Report: Financial Position and Performance of Ted Baker PLC – 2010 to 2013
The subsequent document examines the monetary performance and position of Ted Baker Plc during the last four fiscal years (2010 to 2013) using proportion analysis. The Appendix provided shows the balance sheet, income statement and calculated and graphical manifestation of the proportion analysis.
Overview of 2010-2013 Benefits:
Profitability: The company has shown very good profitability over time and is a top artist in its expert group. 2012 saw a change in earnings mix made from wholesale vs price tag (wholesale % increased) which will along with expansion and promotional actions oversees, saw a small decline in total profitability. This kind of then better in 2013. Efficiency: Inventory Turnaround Period has gradually increased because of stocking of inventory to fulfill growth and demand oversees which ended in increased capital expenditure. It is additionally well over a average inventory turnaround period of industry colleagues. Trade payable pay-outs and trade receivable receipts include remained constant and asset turnover can be steadily increasing. Liquidity: Decreasing trend in liquidity proportions. The CURRENT rate is still near the industry expert average. Yet, in 2012-13 excessive short term borrowing and increase in inventory in order to meet demand and growth offers resulted in the ACID TEST percentage to show up below you which is well below the sector peers. Additionally there is a negative cashflow in 2012-13. The company ought to look into financing some of the capital requirements from its stores and start minimizing the inventory stock. Gearing: The GEAR and INTERST COVER ratios are good with respect to market peers as well. Most of the industry�s expansion activities are borrowed from temporary borrowings instead of reserves or equity money. Investments: The company has paid out regular and steady returns over the period. The DIVIDEND YIELD and DIVIDEND COVER ratios are good. Good functionality, good EPS and a promising outlook offers resulted in investors and the marketplace showing confidence in the firm which is shown in very good PE proportions.
Simple SWOT and PESTEL Research:
Ted Baker PLC's aim outlined is definitely ‘' to turn into a world leading designer lifestyle brand ‘' and the strategy to achieve this is 1) Consider expansion of collection.
2) Control circulation through three main channels – retail, wholesale & licensing. 3) Carefully take care of development of existing and fresh international market segments.
Good brand name
Niche market in high end vogue
Upon trend styles
Very strong aesthetic merchandising
Sells women's put on, menswear, kid's wear, add-ons, bags, sneakers, fragrance splendor, teds combing. Recently residence fragrance Openly promotes Moral and Durability policies
Presents 15% college student discount
Use the internet and in store, has snack bars. worldwide
Good customer companies
Limited size range
No expectant mothers range
No teenage selection
Global development plan
New market exploitation
Online product sales in producing markets
Fast changing products
Further throughout the world expansion
Portable app to get more social interaction
Strong competition regionally and internationally
Changes in labour/wage laws
Competition are cheaper
Competitors have more ranges
Strategic PESTEL Analysis:
To be able to fulfil the strategic is designed, a PESTEL analysis was conducted in 2014 and summarised the following:
Political environment is quite stable in regions where the group runs (aim 3) No noticeable effect on religious beliefs (aim 3)
Economic uncertainty (aim 2)
Prize package to hold the skilled within the organization (aim 3) Social:
Demand for recyclable clothes (aim 1)
Social media marketing (all 3 aims)...